Lachhuka Insights
Investment of Savings or funds set apart for future expenses, emergencies, business expansion or to meet uncertainties is important for every entity whether for personal needs or businesses.
As an individual, we need funds for various life-time events like:
1. Admission of Children to School, Admission Fee and Caution Money make it a good sum, specially in early part of your career.
2. Higher education expenses of Children.
3. Buying a House.
4. Buying a Car.
5. Marriage of your children.
6. Completion of important milestones like 25th Anniversary.
7. Retirement Corpus.
Apart from these, we need funds for medical emergencies, drop in income due to service-break, annual vacation, occasional Gifts to spouse and children.
There may be varied and diversified instruments to meet each of your goals. You should not shy of taking the help of an expert, if you find DIY(Do it yourself) difficult.
As a Business, we need funds for:
1. Expansion.
2. Temporary drop in business.
3. Temporary impact in flow of funds due to slower collection or movement of inventory.
4. Need to ensure the uninterrupted supply chain, specially the critical ones.
5. Payment of one-time settlement for employees like Gratuity.
Creating a separate fund from non-cash expenses like Depreciation, Provisions for Gratuity or other expenses is very much important for smooth functioning by timely replacement of fixed assets. Apart from these, some funds should be separated to meet expansion and diversification requirements.
There may be varied and diversified instruments to meet each of your needs. You should not shy of taking the help of an expert, if you find DIY(Do it yourself) difficult.
